********************************************************
NOTICE
********************************************************
This document was converted from Microsoft Word.
Content from the original version of the document such as
headers, footers, footnotes, endnotes, graphics, and page numbers
will not show up in this text version.
All text attributes such as bold, italic, underlining, etc. from the
original document will not show up in this text version.
Features of the original document layout such as
columns, tables, line and letter spacing, pagination, and margins
will not be preserved in the text version.
If you need the complete document, download the
Microsoft Word or Adobe Acrobat version.
*****************************************************************
FOR IMMEDIATE RELEASE: NEWS MEDIA CONTACT:
November 6, 2012 Mark Wigfield, 202-418-0253
E-mail: mark.wigfield@fcc.gov
AT&T TO PAY $700,000 TO RESOLVE COMPLAINTS OF EXCESS CHARGES FOR WIRELESS
DATA PLANS AGAINST "GRANDFATHERED" DATA SUBSCRIBERS
FCC Enforcement Bureau Consent Decree Will Also Require AT&T to Refund
Excess Charges
Washington, D.C. - As a result of an FCC Enforcement Bureau investigation,
AT&T agreed to pay $700,000 as part of a consent decree to resolve
complaints that the company switched certain consumers to its mandatory
monthly wireless data plans even though it had promised they could retain
their existing pay-as-you-go data plans. These customers are called
"grandfathered subscribers."
AT&T has agreed to refund excess charges paid by individual customers,
which could be as much as $25 to $30 a month, depending on data use. The
transfers began occurring in November 2009, shortly after AT&T required
first-time smartphone subscribers or those who upgraded their phones to
enroll in monthly data plans. Consumer complaints prompted the FCC to
launch an investigation last year.
"Today's action sends a clear signal that wireless carriers can't
wrongfully charge consumers,'' said FCC Chairman Julius Genachowski.
"These strong FCC accountability measures will ensure customers are not
over-charged. I am pleased that AT&T is taking the appropriate steps to
resolve this issue."
"This Consent Decree puts precious dollars back in the pockets of
consumers-where they belong," said Michele Ellison, Chief of the FCC's
Enforcement Bureau. "We strongly encourage AT&T subscribers to check their
bills closely and contact the company if they spot any overcharges related
to wireless data."
AT&T smartphone customers who had pay-as-you-go data plans (or had
disabled network data) and kept their old phones had the option to keep
their pay-as-you-go data plans when the company made monthly plans
mandatory in September 2009. Some consumers who replaced these phones
under warranty or insurance, or who moved to a new residence were switched
to the monthly plans, even though AT&T had said the "grandfathering"
policy would continue to apply in these situations.
Under the terms of today's Consent Decree with AT&T, the company has
agreed to make a voluntary payment in the amount of $700,000 to the U.S.
Department of Treasury and refunds to individual customers. AT&T has also
agreed to an extensive compliance plan, which includes: consumer
notification, training of customer care representatives, and periodic
compliance reports to the FCC. AT&T must also conduct additional searches
of its records to identify improperly switched consumers and ensure
appropriate refunds.
The full link to the consent decree is
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DA-12-1769A2.pdf.
The accompanying Order is at
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DA-12-1769A1.pdf.
-FCC-
News about the Federal Communications Commission can also be found on the
Commission's web site www.fcc.gov.
NEWS
Federal Communications Commission
445 12th Street, S.W.
Washington, D. C. 20554
This is an unofficial announcement of Commission action. Release of the
full text of a Commission order constitutes official action.
See MCI v. FCC. 515 F 2d 385 (D.C. Circ 1974).
News Media Information 202 / 418-0500
Internet: http://www.fcc.gov
TTY: 1-888-835-5322